Agnico-Eagle reports record operating and financial results (All
amounts expressed in U.S. dollars unless otherwise noted) TORONTO,
Feb. 23 /PRNewswire-FirstCall/ -- Agnico-Eagle Mines Limited today
announced continued strong financial and operating results as it
reported record fourth quarter earnings of $15.6 million, or $0.18
per share compared to net earnings of $2.4 million, or $0.03 per
share, in the fourth quarter of 2003. Operating cash flow (before
working capital changes) in the quarter was $21.0 million compared
to $10.5 million in the prior year's fourth quarter. For the year,
a net earnings record of $47.9 million, or $0.56 per share, was
also set. This compared to a net loss of $19.5 million, or $(0.23)
per share, in 2003. Over the full year, operating cash flow (before
working capital changes) increased to $77.9 million, a substantial
improvement from $4.0 million in 2003. Highlights for the quarter
include: - Third consecutive quarter of ore production exceeding
8,000 tons per day drove byproduct production up substantially and
total cash costs to produce an ounce of gold down 94% to set a new
quarterly record of $13 per ounce. New record set for full year
gold production and total cash costs at 271,567 ounces (up 15%) and
$56 per ounce (down 79%), respectively. - Record earnings and cash
flow for both the quarter and full year and the highest on a per
share basis since 1980. - Proven and probable gold reserves of 7.9
million ounces, as production replaced. - Bulk sample completed at
Goldex project with positive results; final feasibility study
expected in the second quarter. - Lapa project surface
infrastructure substantially complete with shaft sinking scheduled
to start in early March. "Agnico-Eagle's record operating and
financial performance has demonstrated the quality of our low cost
operation," said Sean Boyd, President and Chief Executive Officer.
"Furthermore, our increased gold reserves and strong balance sheet
place us in an excellent position to move our regional projects
forward and realize our objective of building a multi-mine
production base," added Mr. Boyd. Conference Call Tomorrow The
Company's senior management will host a conference call on
Thursday, February 24, 2005 at 11:00 a.m. (E.S.T.) to discuss
financial results and provide an update of the Company's
exploration and development activities. To participate in the
conference call, please dial (416) 640-4127. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the call. A live audio webcast of the call will
be available on the Company's website at
http://www.agnico-eagle.com/. The conference call will be replayed
from Thursday, February 24, 2005 1:00 p.m. (E.S.T.) to Thursday,
March 3, 2005 11:59 p.m. (E.S.T.). Please dial the toll-free access
number 877-289-8525, passcode 21104888 followed by the number sign.
LaRonde Sets Annual Records for all Metals Produced For the third
consecutive quarter, LaRonde processed over 8,000 tons of ore per
day as a record of over 792,000 tons of ore, or 8,614 tons per day,
was processed through the mill. As a result of the increased ore
production, minesite operating costs decreased by 11% to C$48 per
ton, in comparison to the fourth quarter of 2003. On a per ounce
basis, net of byproduct credits, LaRonde's total cash costs reached
a new quarterly record low of $13 per ounce. For the full year,
record ore production was realized at nearly three million tons, or
8,156 tons per day, as minesite operating costs per ton were driven
down 8% to C$48 per ton. Record production of all metals was
achieved in the year with gold production up 15% to 271,567 ounces
while byproduct silver, zinc and copper production increased by
44%, 67% and 13%, respectively. As a result of the improvement in
metals production, improved prices for all byproduct metals and the
elimination of production royalties, total cash operating costs
decreased by 79% to $56 per ounce of gold produced when compared to
2003. Record Production and Strong Metal Prices Yield Record
Earnings and Cash Flows These strong operating results contributed
to strong earnings and operating cash flows in both the quarter and
full year. Fourth quarter earnings were $15.6 million, or $0.18 per
share compared to net earnings of $2.4 million, or $0.03 per share,
in the fourth quarter of 2003. Operating cash flow (before working
capital changes) in the quarter was $21.0 million compared to $10.5
million in the prior year's fourth quarter. In addition to improved
metals production, financial results were positively impacted by
sharply higher prices for all four metals produced at LaRonde.
Fourth quarter earnings also benefited from a $4.3 million deferred
tax recovery ($0.05 per share) resulting from positive tax return
filing adjustments. However, earnings were negatively affected by a
$1.8 million ($0.02 per share) foreign exchange loss on the
translation of Canadian dollar denominated monetary balance sheet
items, as the Canadian dollar experienced an unprecedented, and
rapid, appreciation. In addition, lower than expected sales volumes
of gold and copper, due to a buildup of copper concentrate
inventories, had an estimated temporary negative impact of $4.4
million on earnings ($0.05 per share) and operating cash flows
(before working capital changes). For the year, a net earnings
record of $47.9 million, or $0.56 per share, was also set compared
to a net loss of $19.5 million, or $(0.23) per share, in 2003. Over
the full year, operating cash flow (before working capital changes)
increased to $77.9 million, a substantial improvement from $4.0
million in 2003. Targets Reiterated for 2005 As previously
disclosed, a summary of the estimated metal production and cash
operating costs together with the material assumptions used in the
Company's estimates for 2005 follows:
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Ore processed (000's tons) 2,911 Daily throughput rate (tons) 7,975
Grades: Gold (oz./t) 0.11 Silver (oz./t) 2.28 Zinc (%) 3.89 Copper
(%) 0.44 Payable metal production: Gold (ozs.) 280,000 Silver
(000's ozs.) 5,500 Zinc (000's lbs.) 160,000 Copper (000's lbs.)
18,000 Minesite operating costs (C$/ton) 48-50 Total cash operating
costs ($/oz.) 135-145 Assumptions: Gold ($/oz.) 375 Silver ($/oz.)
6.00 Zinc ($/lb.) 0.45 Copper ($/lb.) 1.15 C$/US$ exchange rate
1.27
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LaRonde's total cash operating cost guidance is based on byproduct
metal price assumptions that are well below current prices and
prices realized in 2004. If current metal prices and exchange rates
were used, total cash operating costs would be well below $100 per
ounce. The estimated sensitivity of LaRonde's 2005 estimated total
cash operating costs to a 10% change in the metal prices and
exchange rates assumptions above follows:
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Change in variable Impact on total cash operating costs ($/oz.)
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C$/US$ 39 Zinc 17 Silver 11 Copper 6
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Gold Reserve Update: Production Replaced A summary of the Company's
gold reserves follows:
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Gold Reserve Summary Proven & Probable Reserve
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(000's ounces) 2004 2003
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LaRonde I 1,847 2,092 LaRonde II 3,258 2,928 Goldex 1,627 1,647
Lapa 1,168 1,187 Other 3 9 ------- ------- Total 7,903 7,864
------- -------
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The assumptions used for 2004 reserves and resources were $360 per
ounce gold, $5.42 per ounce silver, $0.41 per pound zinc, $0.95 per
pound copper and a C$/US$ exchange rate of 1.42. For every 10%
change in the gold price, there would be an estimated 7% change in
proven and probable reserves. The above mineral reserve and
resource estimate does not include the significant byproduct
silver, zinc and copper contained in the LaRonde ore body. Please
see the table appended to this press release for more detailed
reserve and resource estimates. Goldex Bulk Sample Delivers
Positive Results At the Company's 100% owned Goldex project,
located 35 miles east of LaRonde, the previously announced bulk
sample program was completed. The purpose of the program was to
extract a representative bulk sample from the deposit and validate
previous reserve and resource estimates and increase the confidence
factor in the estimated grade. The program consisted of 2,000 feet
of raise development through the deposit over a strike length of
1,000 feet, 17,000 feet of diamond drilling, channel sampling, muck
sampling, detailed structural mapping and the processing of the
material through a local custom milling facility. An 18,213 ton
sample was processed during January and February, returning a grade
of 0.081 ounces of gold per ton, nearly 10% higher than the grade
of 0.074 ounces of gold per ton returned from the 113,000 ton bulk
sample processed in 1996. Mill recoveries exceeded expectations.
This latest result is particularly noteworthy in comparison to the
1996 result as it was extracted along a strike length of 1,000 feet
and a vertical distance of 650 feet whereas the previous sample was
extracted from a specific localized area of the deposit. While the
current reserve estimate is essentially unchanged at 1.6 million
ounces, the bulk sample program has increased the confidence level
in the estimate. The feasibility study is currently being revised
incorporating the latest positive sampling results and increased
reserves and is expected to be completed by the second quarter. The
Company is encouraged by the positive results of the bulk sample,
the technical simplicity of the project and its proximity to
LaRonde, which will allow for the use of existing infrastructure
and other regional synergies. An earlier economic study had
indicated that Goldex could add an average of 160,000 ounces per
annum to the Company's gold production at total cash operating
costs of less than $200 per ounce, over its projected life of 10
years. The mine plan is currently being revised as part of our
feasibility study. Lapa Shaft Sinking Set to Begin At the Company's
100% owned Lapa project, located seven miles east of LaRonde, all
surface buildings including the headframe have been erected.
Mechanical installation of the hoist and compressors commenced
early in January. Shaft sinking is scheduled to commence in early
March. The Company previously announced a $30 million underground
development, drilling and metallurgical program at Lapa. Lapa
contains 1.2 million ounces of proven and probable gold reserves
that have been traced to a depth of 4,100 feet below surface. The
main lens of the deposit, the Contact Zone, has been traced over a
strike length of up to 470 feet and a vertical extent of 4,300 feet
with thicknesses ranging from almost 10 to 50 feet. An inferred
resource has also been outlined at Lapa of 0.4 million ounces. The
deposit has been traced to a depth of 5,200 feet and remains open
for expansion at depth. The first phase of the Lapa underground
program includes a 2,700-foot shaft sinking project. The 16-foot
diameter concrete-lined shaft is expected be completed by the first
half of 2006 providing access for an underground diamond drilling
program to test the depth potential of the deposit, to confirm the
mining method, continuity and estimated dilution factor and to
extract a 15,000 ton metallurgical bulk sample. The objective of
the bulk sample is to refine the metallurgical process and
determine whether the frequency of coarse visible gold is
sufficient to justify an increase in the reserve grade closer to
the uncut grade, which would have a positive impact on the
project's economics. Positive results from this program would
result in an extension of the shaft to a depth of approximately
4,500 feet below surface. Incremental capital costs to bring the
project into full production after the bulk sample are currently
estimated at approximately $80 million. Assuming no further
additions to reserves and the current reserve grade, the Company
envisages an eight-year mine life with steady-state production
levels by late 2008 of approximately 125,000 ounces of gold per
annum at cash operating costs of approximately $175 per ounce.
LaRonde II Feasibility Study to be Completed in Second Quarter
Seven drills were in operation during the fourth quarter at
LaRonde. On deep exploration, three of these drills tested Zone 20
North below the bottom of the Penna Shaft from the Level 215
exploration drift with the objective of converting additional
resources into reserves and to define the polymetallic zone to the
west. The most interesting results follow:
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Gold True (oz/ton) Drill Thickness Cut Silver Copper Zinc Hole (ft)
From To (1.5 oz) (oz/ton) (%) (%)
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3215-99 45.9 3,551.1 3,620.0 0.20 2.22 0.42 6.42
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3215-100 28.2 2,533.1 2,577.7 0.12 1.18 0.27 0.03
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3215-101 14.1 3,038.3 3,061.0 0.15 3.36 0.04 0.14
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3215-102 9.5 3,149.6 3,162.7 0.24 2.43 0.29 5.72
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3215-103 9.2 4,102.3 4,117.7 0.07 0.10 0.16 0.01
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3215-103A 49.5 3,573.2 3,646.0 0.22 0.17 0.12 0.03
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Including 22.0 3,573.2 3,605.6 0.40 0.29 0.02 0.06
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3215-105A 24.3 4,006.5 4,049.8 0.27 0.40 0.54 0.06
-------------------------------------------------------------------------
Including 12.1 4,018.7 4,040.0 0.45 0.52 0.61 0.06
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Drill hole 3215-105A appears to have expanded the polymetallic zone
to the east, intersecting higher grade gold mineralization at a
depth of 10,336 feet. Follow up drill holes have been targeted
within the core of the polymetallic zone. On the LaRonde II
project, a study of shaft options to access the ore beneath the
Penna Shaft infrastructure is nearing completion and a feasibility
study for the project is expected to be completed by the second
quarter. Tour of LaRonde and Regional Projects Planned The Company
is planning a tour of the LaRonde Mine and the Company's regional
projects on Tuesday May 10, 2005 and Wednesday, May 11, 2005.
Visits to Goldex, Lapa and LaRonde will be conducted on those
dates. Investors and analysts should register their interest with
Hazel Winchester at (416) 847-3717 or . Where to Find Maps The
longitudinal illustrations that detail the drill results presented
in this news release can be viewed and downloaded from the
Company's website http://www.agnico-eagle.com/ (Press Release) or:
http://www.agnico-eagle.com/url/050223/goldex.pdf
http://www.agnico-eagle.com/url/050223/lapa.pdf
http://www.agnico-eagle.com/url/050223/laronde.pdf
http://www.agnico-eagle.com/url/050223/quebec_properties.pdf
Forward Looking Statements The information in this press release
has been prepared as at February 23, 2005. Certain statements
contained in this press release constitute "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. When used in this
document, the words "anticipate", "expect", "estimate," "forecast,"
"planned" and similar expressions are intended to identify
forward-looking statements. Such statements reflect the Company's
views at the time with respect to future events and are subject to
certain risks, uncertainties and assumptions. Many factors could
cause the actual results to be materially different from those
expressed or implied by such forward-looking statements, including,
among others, those which are discussed under the heading "Risk
Factors" in the Company's Annual Information Form and Annual Report
on Form 20-F for the year ended December 31, 2003. The Company does
not intend, and does not assume any obligation, to update these
forward-looking statements. About Agnico-Eagle Agnico-Eagle is a
long established Canadian gold producer with operations located in
northwestern Quebec and exploration and development activities in
eastern Canada and the southern United States. Agnico-Eagle's
LaRonde Mine in Quebec is Canada's largest gold deposit. The
Company has full exposure to higher gold prices consistent with its
policy of no forward gold sales. It has paid a cash dividend for 25
consecutive years. Agnico-Eagle Mineral Reserve & Mineral
Resource Data
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Au Au Ag Cu Zn (000's Tons Category and Zone (oz/t) (oz/t) (%) (%)
oz.) (000's)
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Proven Mineral Reserve
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LaRonde I 0.09 2.65 0.43 4.46 590 6,493
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Subtotal Proven
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Mineral Reserve 0.09 590 6,493
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Probable Mineral Reserve
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LaRonde I 0.08 2.34 0.31 4.02 1,257 14,907
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LaRonde II 0.17 0.58 0.33 0.83 3,258 19,312
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Lapa 0.26 1,168 4,509
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Goldex 0.07 1,627 22,148
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Bousquet 0.06 3 57
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Subtotal Probable
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Mineral Reserve 0.12 7,313 60,933
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Total Proven and Probable Mineral Reserves 0.12 7,903 67,426
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Indicated Mineral Resource
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LaRonde I 0.07 0.98 0.17 2.35 139 1,992
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LaRonde II 0.08 0.64 0.30 1.00 158 1,980
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Goldex 0.07 63 924
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Lapa 0.16 133 832
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Bousquet 0.18 349 1,984
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Ellison 0.17 45 273
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Total Indicated Resource 0.11 887 7,985
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Inferred Mineral Resource
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LaRonde II 0.19 0.80 0.32 2.11 2,032 10,831
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Bousquet 0.22 440 1,994
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Goldex 0.05 181 3,548
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Lapa 0.22 423 1,884
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Ellison 0.19 199 1,064
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Total Inferred Resource 0.17 3,275 19,321
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Scientific and Technical Data A qualified person, Guy Gosselin,
P.Eng., P.Geo., LaRonde Division's Chief Geologist, has verified
the LaRonde exploration information disclosed in this news release.
The verification procedures, the quality assurance program and
quality control procedures used in preparing such data may be found
in the 2004 Mineral Resource and Mineral Reserve Report,
Agnico-Eagle Mines Limited, LaRonde Division, dated November 15,
2004, filed on SEDAR. Agnico-Eagle Mines Ltd. is reporting mineral
resource and reserve estimates in accordance with the CIM
guidelines for the estimation, classification and reporting of
resources and reserves. The effective date of each estimate is
December 31, 2004. More recent information on exploration, mining,
processing, metallurgy and other economic factors have also been
used. Reserve estimates were calculated using historic three-year
average metals prices and foreign exchange rates in accordance with
the Securities and Exchange Commission's ("SEC") Industry Guide 7.
Industry Guide 7 requires the use of prices that reflect current
economic conditions at the time of reserve determination which
Staff of the SEC has interpreted to mean historic three-year
average prices. The assumptions used for 2004 reserves and
resources were $360 per ounce gold, $5.42 per ounce silver, $0.41
per pound zinc, $0.95 per pound copper and a C$/US$ exchange rate
of 1.42. There are no known relevant issues that would materially
affect the estimates. No independent verification of the data has
been published. Tonnage amounts and contained metal amounts
presented in the tables in this news release have been rounded to
the nearest 1000. Canadian Administrator's National Instrument
43-101 requires mining companies to disclose reserves and resources
using the subcategories of "proven" reserves, "probable" reserves,
"measured" resources, "indicated" resources and "inferred"
resources. Mineral resources that are not mineral reserves do not
have demonstrated economic viability. A mineral reserve is the
economically mineable part of a measured or indicated resource
demonstrated by at least a preliminary feasibility study. This
study must include adequate information on mining, processing,
metallurgical, economic and other relevant factors that
demonstrate, at the time of reporting, that economic extraction can
be justified. A mineral reserve includes diluting materials and
allows for losses that may occur when the material is mined. A
proven mineral reserve is the economically mineable part of a
measured resource for which quantity, grade or quality, densities,
shape and physical characteristics are so well established that
they can be estimated with confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support production planning and evaluation of the economic
viability of the deposit. A probable mineral reserve is the
economically mineable part of an indicated mineral resource for
which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. A mineral resource is a
concentration or occurrence of natural, solid, inorganic or
fossilized organic material in or on the earth's crust in such form
and quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade,
geological characteristics and continuity of a mineral resource are
known, estimated or interpreted from specific geological evidence
and knowledge. A measured mineral resource is that part of a
mineral resource for which quantity, grade or quality, densities,
shape, physical characteristics, can be estimated with a level of
confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate
is based on detailed and reliable exploration, sampling and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are
spaced closely enough to confirm both geological and grade
continuity. An indicated mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of
confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate
is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are
spaced closely enough for geological and grade continuity to be
reasonable assumed. An inferred mineral resource is that part of a
mineral resource for which quantity and grade or quality can be
estimated on the basis of geological evidence and limited sampling
and reasonably assumed, but not verified, geological and grade
continuity. The estimate is based on limited information and
sampling gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. Mineral
resources which are not mineral reserves do not have demonstrated
economic viability. Investors are cautioned not to assume that part
or all of an inferred resource exists, or is economically or
legally mineable. The qualified person responsible for the LaRonde
II pre-feasibility study is Carol Plummer, P.Eng., Project Manager
for LaRonde II. The qualified person responsible for the Lapa and
Goldex pre-feasibility studies is Rosaire Emond P.Eng., Regional
Division's Senior Mining Engineer. The qualified person responsible
for the LaRonde mineral reserve and resource estimate is Guy
Gosselin, P.Eng, P.Geo., LaRonde Division's Chief Geologist. A
description of the operating and capital cost assumptions,
parameters and methods used to estimate the Penna shaft can be
found in the LaRonde Division SEDAR disclosure cited above. The
qualified person responsible for the Lapa mineral reserve and
mineral resource estimate is Christian D'Amours, P.Geo., of Service
Conseil Geopointcom. In estimating the Lapa resource and reserve, a
minimum gold grade cut-off of 0.15 and 0.19 oz/ton, respectively
was used to evaluate drill intercepts that have been adjusted to
respect a minimum mining width of 9.2 ft. The estimate was derived
using a three dimensional block model of the deposit; the grades
were interpolated using the inverse distance power squared method.
The Goldex mineral reserve and resource estimate was supervised by
Marc H. Legault, P.Eng., Manager Project Evaluations of
Agnico-Eagle. A qualified person Carl Pelletier, P.Geo., of
Innovexplo Geological Services, supervised the preparation of and
verified the scientific and technical information regarding the
Goldex project including sampling, analytical and test data
underlying the mineral reserve and resource estimate. A qualified
person, R. Mohan Srivastava, P.Geo., of Froidevaux, Srivastava
& Schofield Consultants, was responsible for the mineral
estimate process at Goldex. The minimum gold grade cut-off used to
evaluate drill intercepts at Goldex was 0.04 oz/ton over a minimum
true thickness of 50 feet. The reserve was derived by evaluating a
three-dimensional model of the Goldex Extension zone, whose gold
grade was estimated using a 95% confidence interval grade
calculation method, and then adjusting the model envelope to only
include sectors with a high probability of exceeding the cut-off
grade. The qualified person responsible for the Bousquet and
Ellison mineral reserve and resource estimates is Normand Bedard
P.Geo., Regional Division's Senior Geologist. Mr. Bedard also
supervised the preparation of and verified the scientific and
technical information regarding the Goldex project including
sampling, analytical and test data underlying the mineral reserve
and resource estimate. In estimating the Bousquet and Ellison
mineral resource and reserve, a minimum gold grade cut-off of 0.09
oz/ton was used to evaluate drill intercepts that have been
adjusted to respect a minimum mining width of 9.8 ft. The estimate
was derived using a combination of three dimensional block modeling
(grades were interpolated using the inverse distance power squared
method) for certain zones and for other zones, by the polygonal
method on longitudinal sections. A portion of the resource estimate
is based on estimates reported when the Bousquet I mine closed in
1996. The resource was reviewed and reclassified using the CIM
definition and guidelines. This information is of a good quality
and is considered reliable. Summarized Quarterly Data (Unaudited)
Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States Dollars Three months ended Year ended
except where noted, December 31, December 31, US GAAP basis) 2004
2003 2004 2003
-------------------------------------------------------------------------
Financial Data Income and cash flow LaRonde Division Revenues from
mining operations $ 45,795 $ 41,849 $ 188,049 $ 126,820 Production
costs 22,175 30,153 98,168 104,990
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Gross profit (exclusive of amortization) $ 23,620 $ 11,696 $ 89,881
$ 21,830
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-------------------------------------------------------------------------
Net income (loss) for the period $ 15,609 $ 2,387 $ 47,879 $
(19,498) Net income (loss) per share $ 0.18 $ 0.03 $ 0.56 $ (0.23)
Operating cash flow $ 11,722 $ 5,703 $ 49,525 $ 4,253 Operating
cash flow (before non-cash working capital) $ 21,040 $ 10,477 $
77,859 $ 3,952 Weighted average number of shares - basic (in
thousands) 85,989 84,424 85,157 83,889 Tons of ore milled 792,542
626,994 2,976,925 2,448,579 Head grades: Gold (oz. per ton) 0.10
0.12 0.10 0.11 Silver (oz. per ton) 2.57 2.22 2.51 2.16 Zinc 4.00%
2.87% 4.03% 3.10% Copper 0.52% 0.60% 0.54% 0.55% Recovery rates:
Gold 90.39% 91.79% 91.49% 91.41% Silver 86.20% 85.80% 86.50% 82.60%
Zinc 82.00% 81.60% 83.50% 78.20% Copper 79.30% 82.50% 78.90% 80.30%
Payable metal produced: Gold (ounces) 68,909 70,299 271,567 236,653
Silver (ounces in thousands) 1,512 1,220 5,699 3,953 Zinc (pounds
in thousands) 44,803 24,732 167,282 100,337 Copper (pounds in
thousands) 6,087 5,749 22,816 20,131 Payable metal sold: Gold
(ounces) 52,464 72,035 254,937 234,573 Silver (ounces in thousands)
1,175 1,307 5,362 4,010 Zinc (pounds in thousands) 43,610 24,548
165,833 102,420 Copper (pounds in thousands) 3,575 5,808 20,349
20,132 Realized prices per unit of production: Gold (per ounce) $
438 $ 395 $ 418 $ 368 Silver (per ounce) $ 7.32 $ 5.27 $ 6.84 $
5.07 Zinc (per pound) $ 0.55 $ 0.43 $ 0.47 $ 0.38 Copper (per
pound) $ 1.39 $ 0.94 $ 1.34 $ 0.82 Onsite operating costs per ton
milled (Canadian dollars) $ 48 $ 54 $ 48 $ 52
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Operating costs per gold ounce produced: Onsite operating costs
(including asset retirement expenses) $ 448 $ 372 $ 406 $ 390 Less:
Non-cash asset retirement expenses 2 (3) (1) (2) Foreign exchange
and byproduct metals hedge gains (17) - (17) - Net byproduct
revenues (420) (189) (332) (173)
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Cash operating costs $ 13 $ 180 $ 56 $ 215 Accrued El Coco
royalties - 40 - 54
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Total cash operating costs $ 13 $ 220 $ 56 $ 269 Non-cash costs:
Reclamation provision (2) 3 1 2 Amortization 65 53 80 74
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Total operating costs $ 76 $ 276 $ 137 $ 345
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Consolidated Balance Sheet Agnico-Eagle Mines Limited
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(thousands of United States dollars, US GAAP December 31, December
31, basis) 2004 2003
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(Unaudited) ASSETS Current Cash and cash equivalents $ 106,014 $
110,365 Metals awaiting settlement 43,442 34,570 Inventories: Ore
stockpiles 9,036 6,557 In-process concentrates 9,065 1,346 Supplies
8,292 6,276 Income taxes recoverable 16,105 7,539 Prepaid expenses
and other 19,843 10,363
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Total current assets 211,797 177,016 Fair value of derivative
financial instruments 2,689 7,573 Investments, loans, advances and
other assets 25,234 11,214 Future income and mining tax assets
51,407 41,579 Mining properties 427,037 399,719
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$ 718,164 $ 637,101
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LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and
accrued liabilities $ 28,667 $ 29,915 Dividends payable 3,399 3,327
Interest payable 2,426 3,161
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Total current liabilities 34,492 36,403
-------------------------------------------------------------------------
Long-term debt 141,495 143,750
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Asset retirement obligation and other liabilities 14,815 15,377
-------------------------------------------------------------------------
Future income and mining tax liabilities 57,136 40,848
-------------------------------------------------------------------------
Shareholders' Equity Common shares Authorized - unlimited Issued -
86,072,779 (2003 - 84,469,804) 620,704 601,305 Warrants 15,732
15,732 Contributed surplus 7,181 7,181 Employee stock options 465 -
Deficit (172,756) (218,055) Accumulated other comprehensive loss
(1,100) (5,440)
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Total shareholders' equity 470,226 400,723
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$ 718,164 $ 637,101
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Note: Certain items have been reclassified from financial
statements previously presented to conform to the current
presentation Consolidated Statement of Income (Loss) and
Comprehensive Income (Loss) (Unaudited) Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States Dollars, Three months ended Year ended
except per share December 31, December 31, amounts, US GAAP basis)
2004 2003 2004 2003
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REVENUES Revenues from mining operations $ 45,795 $ 41,849 $
188,049 $ 126,820 Interest and sundry income 233 (477) 655 2,775
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46,028 41,372 188,704 129,595 COSTS AND EXPENSES Production 22,175
30,153 98,168 104,990 Exploration and corporate development 2,261
1,464 3,584 5,975 Equity loss in junior exploration companies 809
1,500 2,224 1,626 Amortization 4,461 3,729 21,763 17,504 General
and administrative 1,158 1,820 6,864 7,121 Provincial capital tax
(580) 58 423 1,240 Interest 2,434 2,486 8,205 9,180 Foreign
currency loss 1,781 113 1,440 72
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Income (loss) before taxes 11,529 49 46,033 (18,113) Federal
capital tax 255 192 1,049 1,090 Income and mining tax recovery
(4,335) (2,530) (2,895) (1,448)
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Income (loss) before cumulative catch-up adjustment 15,609 2,387
47,879 (17,755) Cumulative catch-up adjustment relating to SFAS 143
- - - (1,743)
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Net income (loss) for the period $ 15,609 $ 2,387 $ 47,879 $
(19,498)
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Net income (loss) before cumulative catch-up adjustment per share -
basic and diluted $ 0.18 $ 0.03 $ 0.56 $ (0.21) Cumulative catch-up
adjustment per share - - - (0.02)
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Net income (loss) per share - basic and diluted $ 0.18 $ 0.03 $
0.56 $ (0.23)
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Weighted average number of shares (in thousands) basic 85,989
84,424 85,157 83,889 diluted 86,418 84,424 85,587 83,889
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Comprehensive income (loss): Net income (loss) for the period $
15,609 $ 2,387 $ 47,879 $ (19,498)
-------------------------------------------------------------------------
Other comprehensive income (loss): Unrealized gain on hedging
activities 2,722 1,708 2,597 8,807 Dilution gain on issuance of
shares by subsidiary, net of tax - - 1,837 4,500 Unrealized gain on
available-for-sale securities 1,217 625 604 2,258 Adjustments for
derivative instruments maturing during the period (709) 1,801
(2,983) 1,801 Adjustments for realized gains on available-for-sale
securities due to dispositions in the period - (155) (632) (1,640)
Cumulative translation adjustments 1,937 - 1,937 - Reversal of
minimum pension liability 980 - 980 -
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Other comprehensive income 6,147 3,979 4,340 15,726
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Comprehensive income (loss) for the period $ 21,756 $ 6,366 $
52,219 $ (3,772)
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-------------------------------------------------------------------------
Note: Certain items have been reclassified from financial
statements previously presented to conform to the current
presentation. Consolidated Statement of Deficit and Accumulated
Other Comprehensive Loss (Unaudited) Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States Dollars Three months ended Year ended
except where noted, December 31, December 31, US GAAP basis) 2004
2003 2004 2003
-------------------------------------------------------------------------
Deficit Balance, beginning of period $ (185,785) $ (217,908) $
(218,055) $ (196,023) Net income (loss) for the period 15,609 $
2,387 $ 47,879 $ (19,498) Dividends declared $ (2,580) $ (2,534) $
(2,580) $ (2,534)
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Balance, end of period $ (172,756) $ (218.055) $ (172,756) $
(218.055)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Accumulated other comprehensive loss Balance, beginning of period $
(7,247) $ (9,419) $ (5,440) $ (21,166) Other comprehensive income
for the period 6,147 3,979 4,340 15,726
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Balance, end of period $ (1,100) $ (5,440) $ (1,100) $ (5,440)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Note: Certain items have been reclassified from financial
statements previously presented to conform to the current
presentation. Consolidated Statement of Cash Flows (Unaudited)
Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United Three months ended Year ended States Dollars,
December 31, December 31, US GAAP basis) 2004 2003 2004 2003
-------------------------------------------------------------------------
Operating activities Net income (loss) for the period $ 15,609 $
2,387 $ 47,879 $ (19,498) Add (deduct) items not affecting cash
from operating activities: Amortization 4,461 3,729 21,763 17,504
Provision for future income and mining taxes (1,888) (1,161) 2,340
1,090 Amortization of deferred costs and other 2,858 5,522 5,877
4,856
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21,040 10,477 77,859 3,952 Change in non-cash working capital
balances Metals awaiting settlement (2,916) (15,709) (9,875)
(4,821) Income taxes recoverable (5,405) (2,791) (8,872) (4,639)
Inventories (5,129) (295) (8,566) (3,559) Prepaid expenses and
other (2,368) (4,273) (1,590) (5,382) Accounts payable and accrued
liabilities 4,883 15,443 1,304 17,414 Interest payable 1,617 2,851
(735) 1,288
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Cash flows from (used in) operating activities 11,722 5,703 49,525
4,253
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Investing activities Additions to mining properties (19,541)
(13,062) (53,318) (42,038) Purchase of available- for-sales
securities and other assets (8,655) 1,641 (21,936) (10,438)
-------------------------------------------------------------------------
Cash flows used in investing activities (28,196) (11,421) (75,254)
(52,476)
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Financing activities Dividends paid - - (2,480) (2,431) Common
shares issued 2,149 1,230 23,653 8,190
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Cash flows provided by financing activities 2,149 1,230 21,173
5,759
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Effect of exchange rate changes on cash and cash equivalents (3)
(20) 205 (105) Net decrease in cash and cash equivalents (14,328)
(4,508) (4,351) (42,569) Cash and cash equivalents, beginning of
period 120,342 114,873 110,365 152,934
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Cash and cash equivalents, end of period $ 106,014 $ 110,365 $
106,014 $ 110,365
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-------------------------------------------------------------------------
Other operating cash flow information: Interest paid during the
period $ 510 $ 349 $ 6,999 $ 7,750
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Capital taxes paid during the period $ 293 $ 653 $ 2,552 $ 2,887
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Note: Certain items have been reclassified from financial
statements previously presented to conform to the current
presentation. DATASOURCE: Agnico-Eagle Mines Limited CONTACT: David
Garofalo, V.P. Finance & CFO, Agnico-Eagle Mines Limited, (416)
947-1212
Copyright